Wednesday, May 28, 2014
“(…) the level of overvaluation [in house prices in Finland] is lower than in other Nordic countries. However, the national average conceals rapid growth in prices in large metropolitan areas (…),” according to the IMF’s economic report on Finland.
More specifically, it says that “House prices have risen the fastest in metropolitan areas. The pace of house price growth has been pronounced in Helsinki and other highly developed areas despite the crisis, but less so in other regions, especially where there have been declines in manufacturing and industry. Similar dynamics are evident in the relative prices of smaller dwellings compared to larger properties or detached homes, underscoring the upward pressures on house prices in highly populated areas.” The report also talks about macroprudential policies, read the full report here.
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